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Internal Revenue Bulletin:  2004-21 

May 24, 2004 

Rev. Rul. 2004-48

Table of Contents

LIFO; price indexes; department stores. The March 2004 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, March 31, 2004.

The following Department Store Inventory Price Indexes for March 2004 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under § 1.472-1(k) of the Income Tax Regulations and Rev. Proc. 86-46, 1986-2 C.B. 739, for appropriate application to inventories of department stores employing the retail inventory and last-in, first-out inventory methods for tax years ended on, or with reference to, March 31, 2004.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups - soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS (January 1941 = 100, unless otherwise noted)
Groups March 2003 March 2004 Percent Change from March 2003 to March 20041
1. Piece Goods 458.9 491.8 7.2
2. Domestics and Draperies 552.6 537.6 -2.7
3. Women’s and Children’s Shoes 642.6 643.4 0.1
4. Men’s Shoes 842.0 840.1 -0.2
5. Infants’ Wear 600.3 593.2 -1.2
6. Women’s Underwear 524.9 493.6 -6.0
7. Women’s Hosiery 341.2 334.6 -1.9
8. Women’s and Girls’ Accessories 556.0 561.7 1.0
9. Women’s Outerwear and Girls’ Wear 380.1 379.7 -0.1
10. Men’s Clothing 570.0 539.2 -5.4
11. Men’s Furnishings 591.1 580.7 -1.8
12. Boys’ Clothing and Furnishings 470.9 451.9 -4.0
13. Jewelry 871.7 890.0 2.1
14. Notions 797.1 798.5 0.2
15. Toilet Articles and Drugs 976.3 982.7 0.7
16. Furniture and Bedding 625.2 620.3 -0.8
17. Floor Coverings 589.1 596.8 1.3
18. Housewares 734.0 714.4 -2.7
19. Major Appliances 217.5 205.2 -5.7
20. Radio and Television 46.6 43.1 -7.5
21. Recreation and Education2 83.8 81.6 -2.6
22. Home Improvements2 125.7 127.8 1.7
23. Automotive Accessories2 111.7 112.3 0.5
         
Groups 1-15: Soft Goods 570.4 564.9 -1.0
Groups 16-20: Durable Goods 400.8 387.2 -3.4
Groups 21-23: Misc. Goods2 95.0 93.8 -1.3
       
  Store Total3 508.5 501.0 -1.5
         
1Absence of a minus sign before the percentage change in this column signifies a price increase.
2Indexes on a January 1986 = 100 base.
3The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco and contract departments.
         

DRAFTING INFORMATION

The principal author of this revenue ruling is Michael Burkom of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Burkom at (202) 622-7924 (not a toll-free call).

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